Financial Term working capital is In accounting and finance, used to describe the amount, if any, by which a businesss current assets exceed its current liabilities. Also used more loosely to describe the funds a firm has available to run its day-to-day business affairs.

Financial Term Liquidity is refers to an investors ability to convert an asset into cash. The faster the conversion the more liquid the asset. Illiquidity is a risk in that an investor might not be able to convert the asset to cash when most needed. Moreover, having to wait for the sale of an asset can pose an additional risk if the price of the asset decreases while waiting to liquidate.